The secret to driving growth for mPOS and smart vending machines lies in wireless connectivity

The POS (point of sale) and vending equipment markets are forecast to grow hugely, due to increasing consumer demand and improved supporting technology including new fully featured yet cost-effective payment terminals. In fact, says Neset Yalcinkaya, VP of products / GM of NA R&D Centre at Quectel Wireless.

  1. It is expected that the UK market will grow at a CAGR of 10.7% during 2022-2032 with regards to Cellular POS terminals, and the UK POS software market is expected to reach US$1.05 billion by 2028.
  2. The global smart vending market is expected to reach $146.6 billion (€145.46 billion) by the year 2027.

Both markets include a wide variety of businesses, from single-person merchants using payment terminals with wireless 3G connectivity, to businesses with POS terminals across several locations and operators with fleets of vending machines in their stores.

Connectivity not just for payments

The wireless connectivity is used not only for payments, but also to determine when smart vending machines have low supplies of certain products, and to track sales to replace slow-moving products with ones more likely to generate sales.

Whether it’s a single-person business, a brand with hundreds of machines, or something in between, they all require low-cost, secure connectivity to maximise their profitability and reduce the possibility of fraud.

For many years many micro-brands have avoided adopting POS systems due to a combination of issues, including high costs, long-term contractual commitments, restrictive user interfaces, and the Payment Card Industry Data Security Standard (PCI DSS).

Yet those issues are being overshadowed by the benefits available from mobile POS (mPOS) technology. There are more than 70 active mPOS terminal providers. The market has grown as brands and consumers alike embraced non-cash payments as never before during the height of Covid-19. Though the pandemic has waned in many parts of the world, consumers and brands that moved to non-cash transactions will continue that practice going forward, with only a small number of transactions returning to cash.

According to Berg Insight, the attach rate for near field communications (NFC) in the mPOS segment rose to 69% in 2020, with shipments of mPOS terminals reaching 26.9 million. Shipments are expected to expand at an 11.7% CAGR, reaching 46.7 million units by 2025.

Cashless vending machines, a rarity only a few years ago, have become commonplace as consumers carry less cash. Most consumers have smartphones and contactless cards that they can use with the newer machines and make other mobile purchases.

Cost-effective intelligent vending

The newer machines accept non-cash payments, gather data on user choices and machine performance to provide products better matched to consumer desires. Additionally, advances in artificial intelligence (AI) enable cost-effective intelligent vending to be rolled out for a variety of use cases and market sectors.

Research firm, Technavio expects the intelligent vending machine market to expand at a CAGR of 22% through 2024, with more than one-third (38%) of the growth to come from the North American market, with the biggest opportunity in the beverage market.

The key to growth lies in critical connectivity

While the previously mentioned growth projections and the theories behind them are all solid, they all depend on reliable, secure, cost-effective connectivity to become realities.

Most smart vending machines and POS systems today operate on 4G/LTE, Wi-Fi, or wired ethernet connections. Some systems are still operating with slower 3G technology but will likely be replaced soon. Many wired solutions will also be replaced because wireless connectivity enables easy relocation.

Neset Yalcinkaya

For the best wireless connectivity, choose wireless modules that can be easily integrated into POS and smart vending machines. The modules should offer multiple-input, multiple-output technology that helps minimise errors while also optimising data speeds. The modules should support a wide range of interfaces, including LCM, camera, touch panel, MC, SPK, UART, USB, I2C, and SPI.

In addition to modules, POS devices also depend on reliable, low-power antennas that use cellular, WiFi, Bluetooth, or GNSS connections. For the best results, seek a single provider for both antennas and modules to ensure ease and reliability of integration.

LTE is the best connectivity solution for both the mPOS and smart vending markets. It provides secure, robust bandwidth at a low cost. 5G technology is more advanced but is limited in availability compared to LTE, a situation that will continue for many years. Rather than wait until the 5G technology is readily available, the mPOS and smart vending market can take advantage of the available LTE connectivity today.

The author is Neset Yalcinkaya, VP of products / GM of NA R&D Centre at Quectel Wireless.

Comment on this article below or via Twitter: @IoTNow_OR @jcIoTnow.


SiTime expands addressable market with its new precision timing solution for autonomous vehicles

Posted on: September 30, 2022

Santa Clara, United States. 27 September, 2022 – SiTime Corporation, a provider in precision timing, introduced a new automotive oscillator family, based on SiTime’s advanced MEMS technology. The new differential oscillators are 10x more resilient and ensure reliable operation of ADAS across extreme road conditions and temperatures. The launch of the new automotive oscillator, AEC-Q100 SiT9396/7,

Read more

Semtech’s LoRa devices featured in Kiwi Technology gas metering solution

Posted on: September 30, 2022

Camarillo, United States. 29 September, 2022 – Semtech Corporation, a global supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, announced that Kiwi Technology, an advanced internet of things (IoT) turn-key solutions and data analytics provider, is using Semtech’s LoRa devices for its new third party class B network control unit (NCU) that connects gas meters

Read more

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more
IoT Newsletter

Join the IoT Now online community for FREE, to receive: Exclusive offers for entry to all the IoT events that matter, round the world

Free access to a huge selection of the latest IoT analyst reports and industry whitepapers

The latest IoT news, as it breaks, to your inbox